Posted by curranjohn on 15th of Feb 2023 at 09:49 am
Hey all, I am just curious how folks handle these trade alerts.
I tried my hand at the scco short and xlv, weat and oih
longs. But they all reversed above or below trend lines. Before I
cover my losses I am just curious if everybody simply sells the
reversals. I go though phases where I try these breakouts but
I just keep losing 1-3% every time. Am I doing somehting wrong? I
have tried before and just a few times in the past but I just keep
losing small amounts. I know the trades are supposed to have a high
success rate (and I try to buy the breakout as close to the alert
as possible).
I do pretty good in longer term swing trades buying the dips for
example. But I have absolutely no success with breakouts.
What am I missing? I have zero confidence with
breakouts.
Posted by curranjohn on 15th of Feb 2023 at 10:33 am
Thanks for feedback. I liked the longs as overall the
market seems to be an uptrend despite the ups and down on the short
term. But I guess I should indeed be looking to capture small
gains on an initial move (which are typically tiny in my
experience) and then sell the rest at a trendline reversaL
Unfortunately I have to work my job during the day so maybe the
simple fact is that the alerts aren't appropriate for me as I can't
be glued to the chair.
Posted by curranjohn on 15th of Feb 2023 at 11:24 am
understood. Thanks. I need to stick to swing trading, and
appropriate position sizing to endure the chop, or catch reversals.
I experimented with the shorter duration trades (with small
$$) and now recognize I just can't give it the required
focus. Back to what works for me.
One thing you have to be cognizant of when trading shorter term
setups is the market backdrop - is the market trending or chopping
in a range. If choppy then you want to consider securing
profits quickly after a move and/or trailing a tight stop or avoid
all together unless nimble. Much more later and best to ask
outside of trading hours. Market direction or backdrop
matters greatly as does the related sector.
Just my 2c. What I see traders doing is taking trades while
ignoring market direction. Your chances are slim when taking
breakouts when the market is overbought like it is now vs back on
Jan 9th when the trend was just starting. 1. You can't trade stocks
in a vacuum. 2. There's no rule that you have to buy
ANYTHING. Most stocks trade WITH market direction. Just
M.O.
baseball analogy observing the field position and changing your
strategy to it. When the market is steady eddy - breakouts and
swings work great and you can be very aggressive. When it'd
downtrading or in a consolidation pattern except chop and be more
conservative
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Hey all, I am just
Posted by curranjohn on 15th of Feb 2023 at 09:49 am
Hey all, I am just curious how folks handle these trade alerts. I tried my hand at the scco short and xlv, weat and oih longs. But they all reversed above or below trend lines. Before I cover my losses I am just curious if everybody simply sells the reversals. I go though phases where I try these breakouts but I just keep losing 1-3% every time. Am I doing somehting wrong? I have tried before and just a few times in the past but I just keep losing small amounts. I know the trades are supposed to have a high success rate (and I try to buy the breakout as close to the alert as possible).
I do pretty good in longer term swing trades buying the dips for example. But I have absolutely no success with breakouts. What am I missing? I have zero confidence with breakouts.
Thanks for feedback. I liked
Posted by curranjohn on 15th of Feb 2023 at 10:33 am
Thanks for feedback. I liked the longs as overall the market seems to be an uptrend despite the ups and down on the short term. But I guess I should indeed be looking to capture small gains on an initial move (which are typically tiny in my experience) and then sell the rest at a trendline reversaL Unfortunately I have to work my job during the day so maybe the simple fact is that the alerts aren't appropriate for me as I can't be glued to the chair.
That's very wise unless they
Posted by steve on 15th of Feb 2023 at 10:34 am
That's very wise unless they are longer base setups which are more conducive to swing trades
thanks. I learned something today.
Posted by curranjohn on 15th of Feb 2023 at 10:38 am
thanks. I learned something today. Appreciate it.
I'd also add that the
Posted by brophy on 15th of Feb 2023 at 11:10 am
I'd also add that the more breakout failures you are seeing is an indication of just how weak the general market is. The opposite also holds true.
understood. Thanks. I need to
Posted by curranjohn on 15th of Feb 2023 at 11:24 am
understood. Thanks. I need to stick to swing trading, and appropriate position sizing to endure the chop, or catch reversals. I experimented with the shorter duration trades (with small $$) and now recognize I just can't give it the required focus. Back to what works for me.
One thing you have to
Posted by steve on 15th of Feb 2023 at 10:13 am
One thing you have to be cognizant of when trading shorter term setups is the market backdrop - is the market trending or chopping in a range. If choppy then you want to consider securing profits quickly after a move and/or trailing a tight stop or avoid all together unless nimble. Much more later and best to ask outside of trading hours. Market direction or backdrop matters greatly as does the related sector.
Just my 2c. What I
Posted by brophy on 15th of Feb 2023 at 10:08 am
Just my 2c. What I see traders doing is taking trades while ignoring market direction. Your chances are slim when taking breakouts when the market is overbought like it is now vs back on Jan 9th when the trend was just starting. 1. You can't trade stocks in a vacuum. 2. There's no rule that you have to buy ANYTHING. Most stocks trade WITH market direction. Just M.O.
baseball analogy observing the field
Posted by matt on 15th of Feb 2023 at 10:11 am
baseball analogy observing the field position and changing your strategy to it. When the market is steady eddy - breakouts and swings work great and you can be very aggressive. When it'd downtrading or in a consolidation pattern except chop and be more conservative